Saturday, December 10, 2022
HomeBusinessFBI Issues Warning to Investors About the Vulnerability of DeFi Platforms to...

FBI Issues Warning to Investors About the Vulnerability of DeFi Platforms to Exploits

The Federal Bureau of Investigation (FBI) has issued a new warning about attacks on decentralized finance (DeFi) platforms, claiming that hackers are exploiting vulnerabilities in the smart contracts that control those platforms. The United States domestic intelligence and security organization, citing an April 2022 report by blockchain analysis firm Chainalysis, reveals that cybercriminals stole $1.3 billion (around Rs. 10,400 billion) worth of crypto between January and March 2022 to have. A staggering 97 percent of stolen crypto came from DeFi platforms.

The same Chainalysis report also pointed to an increase from 30 percent in 2020 to 72 percent in 2021. The agency reported that it observed criminals exploiting signature verification, manipulating cryptocurrency price pairs, bypassing slippage checks, and using flash loans as credit as a payment method. Regarding the latter, the FBI provided an example and made a note.

While the FBI acknowledged that “all investments carry some degree of risk,” the agency advised investors to thoroughly research DeFi platforms before using them and, when in doubt, to consult a qualified financial advisor. The agency explained that it is crucial that the platform’s logs are robust and that they have undergone one or more independent code audits. A code audit often involves a review of the platform’s underlying code to find vulnerabilities or bugs that could potentially be exploited.

The FBI advises caution when dealing with DeFi investment pools with a “minimum time to join” or “fast deployment of smart contracts,” especially if they have not conducted code review.

According to the FBI, DeFi platforms can also contribute to security by routinely testing their code to find vulnerabilities and using real-time analytics and monitoring. The guidelines also include developing an incident response strategy and alerting users to potential platform bugs, hackers, exploits, or other questionable behavior.

- Advertisement -

- Advertisment -

- Advertisment -spot_imgspot_imgspot_img


Two Wheeler


Digit News